Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 7 - Flexible Budgets, Direct-Cost Variances, and Management Control - Assignment Material - Problems - Page 282: 7-34(4)

Answer

Direct Materials Price Variance: Direct Materials Price Variance = (Actual Price - Budgeted Price) * Actual Pounds = (\$2.70 - \$2.00) * 158,300 pounds = (\$0.70) * 158,300 pounds = \$110,810 U

Work Step by Step

Direct Materials Price Variance: Direct Materials Price Variance = (Actual Price - Budgeted Price) * Actual Pounds = (\$2.70 - \$2.00) * 158,300 pounds = (\$0.70) *158,300 pounds = \$110,810 U
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